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Comm Devices (CD) is a division of Marigold Communications, Inc CD produces restaurant pagers and other personal communication devices, These devices are sold to other
Comm Devices (CD) is a division of Marigold Communications, Inc CD produces restaurant pagers and other personal communication devices, These devices are sold to other Marigold divisions, as well as to other communication companies, CD was recently approached by the manager of the Personal Communications Division regarding a request to make a special emergency-response pager designed to receive signals from anywhere in the world. The Personal Communications Division has requested that CD produce 11,100 units of this special pager. The following facts are avaitable regarding the Comm Devices Division. For each of the following independent situations, calculate the minimum transfer price and determine whether the Personal Communications Division should accept or reject the offer. (a) The Personal Communications Division has offered to pay the CD Division $113 per pager. The CD Division has no available capacity. The CD Division would have to forgo sales of 8,880 pagers to existing customers in order to meet the request of the Personal Communications Division. (Note. The number of special pagers to be produced does not equal the number of existing pagers that would be (orgone) (Round answer to 2 decimal ploces, eg. 125.36) Minimum transier price s Personal Comrmunicatiors Bivision should the offer. The Personal Communications Division has offered to pay the CD Division $150 per pager. The CD Division has no available capacity. The CD Division would have to forgo sales of 14,800 pagers to existing customers in order to meet the request of the Personal Communications Division, (Note The number of special pagers to be produced does not equal the number of existing pagers that would be forgone) Minimum transter price Personul Communications Division should the offer: (c) The Personal Communications Division has offered to pay the CD Division $10B per pager. The CD Division has available capacity. Minimum transfer price Personal Communications Division should the offer
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